Today is a potentially critical junction for the Yen as the actions from the ECB are set to impact the safe haven status of the Yen. With the BOJ overnight predicting even lower inflation ahead, it will be very important for the markets to come away from the ECB decision with a marginal improvement in global economic sentiment, or the recent rise in the Yen might be expected to continue. However, we can’t rule out a temporary corrective setback in the wake of the 1-2 punch from the ECB announcement and from the US initial claims results. Sell
rallies in the Yen to 85.60.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. A positive signal for trend short-term was given on a close over the 9-bar moving average. A positive setup occurred with the close over the 1st swing resistance. The next downside objective is now at 83.75. The next area of resistance is around 85.51 and 86.02, while 1st support hits today at 84.38 and below there at 83.75.